The case is, A bought some good from the dealer situated in same state but in course of movement of goods pass through the territory of any other state.

Under this case will the purchase be considered as Interstate Purchases?

The answer is no. Explanation(2) to Section 3 of Central Sales Tax Act, 1956 says " Where the movement of goods commences and terminates in the same state it shall not be deemed to be a movement of goods from one state to another by reason merely of the fact that in the course of such movement the goods pass through the territory of any other state"

From the explanation its clear that merely because goods passed through other state does not make the purchase as interstate purchase.

This a practical problem which confuse many whether c-form is to be issued for such purchases or not. C-Form need not to be issued since the purchase is considered within state.

Posted 2 years, 10 months ago by CA Pulkit Sharma

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